Since the Equifax data breach, which saw the personal information of many consumers hacked, much has been written about liability of the company in the breach. Equifax, like most companies in the sector, has cyber insurance to cover incidents related to hacks. However, reports suggest Equifax cyber insurance coverage isn’t enough to cover the company’s losses in the latest attack.
Equifax breach insurance reportedly covers $100 to $150 million, and costs are shared by carriers. Based on past breaches with companies like Yahoo and other revelations, the total cost of the Equifax breach may be many times its insurance policy payout. The full amount of the cost to the company, however, may not be known for years.
The Limits of Protection and the Costs of Breaches
The Equifax breach saw the drivers’ license information, Social Security Numbers and birth dates of about 143 million people compromised. Equifax now faces class action lawsuits seeking billions of dollars, along with federal and state legislation. In its annual report, Equifax noted its crime, general liability and breach coverage “may not” be enough to cover all failures and losses related to the breach.
The costs of hacks and breaches tend to be high, especially for large companies, because the scope of the losses may not be known for some time, which can limit how quickly companies can act to mitigate losses. In addition, hackers can gain access to thousands or even millions of pieces of data in just minutes, which means any breach can have far-reaching consequences and high costs.
How Does Insurance Affect Me?
If you have a business, you need quality business and cyber insurance. In today’s climate especially, companies need general liability insurance, cyber insurance, crime insurance and other coverage against loss. As the Equifax case shows, having inadequate insurance can happen even to large companies and create significant concerns for organizations. Small companies and large corporations need adequate insurance. Even a minor security breach caused by a single employee at a small business can cause enough losses to threaten the survival of a smaller company.
Through no fault of your own, the work you’ve labored over can be threatened by the actions of fraudsters and hackers. If you have questions about the type of insurance you need or want to get quotes for robust coverage that protects you from the worst, contact Gunn-Mowery, LLC.
We stay on top of the latest concerns in this industry and develop relationships with numerous insurance carriers to bring you information and quotes you can use. Our goal is to help you find quotes and other information to give you peace of mind and protection in the event of a claim. We work closely with your needs and offer personalized solutions based on your goals and requirements. That’s the Upside of Insurance you get with Gunn-Mowery.